Are you considering selling your home/property through owner financing? The following information will safeguard the process and also equip you for a smooth transaction should you later decide to sell your private mortgage note to a third party for cash.

Know Your Buyer

A couple relaxing on the couch with their hands behind their heads. Selling a note

First and foremost when owner financing is knowing your buyer! Have a simple and well-defined application and require a credit report completely filled out with all pertinent information. American Equity Funding can assist with this step pending permission of all involved.

Procure a Down Payment

Procuring the largest down payment as possible will help the loan-to-value (LTV) ratio in case of default and also reduce the risk of the payer walking away if difficulties arise. This is important when contemplating owner financing.

Hire a Professional

Hiring a professional to prepare your documents will ensure all regulations are met and provide legal protection. Selling a note is easier with professional assistance.

Successful business woman and man working at the office

Purchase Mortgagee Title Insurance

A mortgagee title policy protects the lender/investor as security for making mortgage money available to a buyer and costs very little when bought as a combination with an owner’s policy when selling property. The title policy is much more expensive if required to buy it later when you wish to sell your note to a mortgage buying company and it can also save time in the closing process.

hand signed insurance

Maintain Accurate Records

Maintain accurate payment records and be sure to deposit and make copies of all checks and deposit slips. This verifies payment history and adds value to your note due to proven financial stability.

Preserve Original Note

Keep the original note in a safe place. Many people lose the note and although it can be overcome, it is much like losing a check and is a hassle. Preserve the note as it is the negotiable instrument! These crucial efforts will protect your assets when owner financing and also establish a smooth proceeding if the need arises to sell your owner financed mortgage note in the future. Please contact American Equity Funding for more information and assistance with selling a note.